With tax season in full swing, millions of Americans are eagerly awaiting their 2025 tax refunds. However, due to IRS processing backlogs, fraud prevention measures, and unclaimed refunds from prior years, some taxpayers could face delays—or even risk losing their refund entirely.
If you’re expecting a tax refund this year, it’s important to check your status to ensure the IRS isn’t holding your money. By understanding common refund delays and taking proactive steps, you can avoid unnecessary waiting and claim what’s rightfully yours before the July 17, 2025, deadline.
Why Are 2025 Tax Refunds Delayed?
| Key Issue | Details |
|---|---|
| IRS Processing Delays | Staffing shortages and backlog of prior tax returns |
| Fraud Prevention Holds | IRS may flag returns for identity verification |
| Incorrect Bank Information | Refunds sent to invalid or closed accounts are returned to the IRS |
| Unclaimed Refunds | 1.5 million taxpayers have yet to claim $1.5 billion in refunds from previous years |
| Refund Processing Time | Typically 21 days, but may take longer in 2025 |
| Deadline for Unclaimed Refunds | July 17, 2025 (for 2021 tax returns) |
| How to Check Refund Status | Use the “Where’s My Refund?” tool on IRS.gov |
The IRS holds billions of dollars in unclaimed refunds every year. Delays in 2025 could be worse due to IRS staffing shortages and heightened fraud prevention measures.
Why Is the IRS Holding Taxpayer Refunds?
1. IRS Workforce Reductions & Processing Delays
The IRS has faced budget cuts and staffing shortages in recent years, leading to:
- Longer processing times for refunds
- Delays in responding to taxpayer inquiries
- Backlogs of unprocessed tax returns from previous years
2. Unclaimed Refunds from Previous Years
Many taxpayers don’t realize that tax refunds expire if left unclaimed. According to the IRS, nearly 1.5 million people still need to claim $1.5 billion in refunds from previous years.
- The deadline to claim 2021 tax refunds is July 17, 2025.
- If you didn’t file in 2021, 2022, or 2023, you may still be eligible for a refund.
3. Fraud Prevention Holds & Identity Verification
To prevent tax fraud, the IRS closely monitors returns and may hold refunds if:
- Your return contains errors or missing information.
- You used a new bank account for direct deposit.
- The IRS suspects identity theft or fraudulent activity.
If flagged, you may need to verify your identity before receiving your refund.
4. Incorrect or Missing Direct Deposit Information
If your refund was sent to the wrong bank account, it may be returned to the IRS, causing significant delays.
How to Check If the IRS Is Holding Your Refund
If your 2025 tax refund is delayed, take the following steps:
1. Use the IRS “Where’s My Refund?” Tool
The fastest way to check your refund status is online:
- Go to Where’s My Refund?
- Enter your:
- Social Security Number (SSN)
- Filing status (Single, Married Filing Jointly, etc.)
- Exact refund amount
- Check your refund status
2. Look for IRS Notices
If the IRS needs additional information, they will send you a notice by mail. Common reasons include:
- Identity verification required
- Errors in your tax return
- Suspected fraudulent activity
3. Call the IRS Refund Hotline
If you can’t check online, call the IRS Refund Hotline at 1-800-829-1954. Be prepared to provide:
- Your Social Security Number
- Your filing status
- Your exact refund amount
4. Contact the Taxpayer Advocate Service (TAS)
If your refund is delayed beyond 21 days and you are facing financial hardship, reach out to the Taxpayer Advocate Service for assistance.
How to Claim an Unclaimed Refund from Previous Years
If you didn’t file a tax return in 2021, 2022, or 2023, you might still be owed a refund. Here’s how to claim it:
1. Check If You Missed Filing
- If you had federal tax withheld or qualified for refundable credits (such as the Earned Income Tax Credit), you may still be owed a refund.
2. File a Late Tax Return
- Submit a tax return for any missing years to claim your refund.
3. Meet the Deadline
- The deadline for claiming 2021 refunds is July 17, 2025. After this date, unclaimed refunds are forfeited to the U.S. Treasury.
How to Avoid Refund Delays in 2025
1. File Electronically & Use Direct Deposit
- E-filing is faster and more accurate than paper filing.
- Direct deposit ensures you receive your refund as quickly as possible.
2. Double-Check Your Return for Errors
Common mistakes that delay refunds include:
Misspelled names or incorrect Social Security Numbers
Math calculation errors
Selecting the wrong filing status
3. Respond to IRS Notices Quickly
If the IRS needs additional information, respond immediately to avoid delays.
4. Register for an IRS Online Account
Having an IRS account lets you:
- Track your refund in real time
- Check past tax returns
- Update direct deposit information
With billions in unclaimed refunds and IRS backlogs in 2025, checking your tax refund status early is crucial. If your refund is delayed, take action by using the “Where’s My Refund?” tool, verifying your information, and responding to IRS notices quickly.
If you haven’t filed for past years, act before the July 17, 2025, deadline to claim your money before it’s gone for good.
FAQ:
Why is my 2025 tax refund delayed?
Delays may be caused by IRS backlogs, fraud prevention holds, missing information, or unclaimed refunds from past years.
How long does it take to get a tax refund in 2025?
The IRS aims to process refunds within 21 days, but delays are possible.
What happens if I don’t claim my 2021 refund by July 17, 2025?
The IRS keeps unclaimed refunds after three years. If you miss the deadline, your refund is forfeited.
What should I do if my refund was sent to the wrong bank account?
Contact the IRS Refund Hotline at 1-800-829-1954 immediately.
